DSCR Loan Calculator — Texas

Most lenders want a DSCR of at least 1.0, which means your monthly rent equals your full mortgage payment (including taxes and insurance). A DSCR of 1.25 or higher is considered strong and may qualify for better rates. Some programs accept a 0.75 DSCR if you bring a larger down payment or extra cash reserves.

You can use either. Most DSCR lenders accept the current lease if the property is already rented, or the market rent estimate from the appraiser if it is vacant. That means you can use a DSCR loan to buy a Texas rental that is not yet leased.

Yes. Many DSCR lenders accept short-term rental income from Airbnb and VRBO. They typically use either your last 12 months of rental history or a projected income report from a market analysis. Texas short-term rental markets like Austin, San Antonio, and the Hill Country are well recognized by most lenders.

DSCR rates are usually a little higher than conventional investment property loans because the lender does not verify your personal income. Your actual rate depends on your DSCR ratio, down payment, credit score, and the property type. Adam Bartling & Team shop multiple lenders to find a competitive rate for your situation.

Most Texas DSCR programs require a minimum 20% to 25% down payment for investment properties. If you have a strong DSCR ratio, a high credit score, or significant cash reserves, you may qualify for programs with lower down payment options.

Yes. Most DSCR lenders allow you to close in the name of an LLC or other business entity. Many Texas investors prefer this approach for liability protection and to keep their rental portfolio organized. Confirm the entity requirements with your loan officer before closing.

Unlike conventional loans, most DSCR programs do not limit the number of investment properties you can finance at the same time. This makes DSCR loans a popular tool for Texas investors who want to scale a rental portfolio beyond the conventional 10-property cap.

Most Texas DSCR lenders look for a minimum credit score around 620, though some programs start at 660 or 680. A score of 700 or higher typically unlocks better rates and lower down payment options. We can review your credit profile and match you with the right program.

Yes — cash-out refinances on investment properties are allowed under DSCR programs in Texas. The 50(a)(6) cash-out restriction applies only to a homeowner’s primary residence in Texas, not to investment properties. Most lenders cap the cash-out loan-to-value at 70% to 75%.

Most DSCR lenders require 3 to 6 months of mortgage payments held in reserves after closing. Reserves can include checking and savings accounts, money market accounts, and a portion of retirement accounts. Stronger reserves can sometimes offset a lower DSCR ratio.